By Milcah Tanimu

As the Nigerian naira experiences a significant upswing against the US dollar, several filling stations have opted to lower their petrol pump prices, signaling potential relief for consumers.

This recent development, coupled with the appreciation of the naira against the dollar, holds the promise of easing transportation expenses and mitigating inflationary pressures on households.

Notably, the Nigerian currency is currently trading at its strongest level against the dollar in the past seven months.

Premium Motor Spirit (PMS), commonly known as petrol, has seen a decline in pump prices from the previous range of N640 to N660 per litre to as low as N620 per litre in select locations across Lagos state. Additionally, visits to some Nigerian National Petroleum Company Limited stations reveal even lower prices, with petrol being sold to motorists at around N580 per litre.

Although there has been no official announcement regarding new petrol prices from NNPC, the observed adjustments in filling stations in Lagos offer a glimmer of hope amid the prevailing high cost of living.

Explaining the price reduction, Kunle Ademola, a fuel station manager in Lagos, attributed it to a decrease in the depot price of petrol from N650 to N620. He emphasized that their ability to offer lower prices stemmed from receiving a new supply at a reduced cost.

Chinedu Okoronkwo, the former president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the intricate relationship between the performance of the naira and fuel prices. He noted that as long as the dollar strengthens in the foreign exchange market, fuel prices in the country are likely to rise, and vice versa.

In the latest forex market update, the naira closed at N1,136.04/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM), marking a 0.6% increase compared to the previous day’s closing rate. Similarly, on the parallel market, the naira appreciated further to N1,000 per dollar, reaching its highest level in seven months.

Furthermore, the introduction of diesel by Dangote Petroleum Refinery has contributed to a reduction in diesel prices from N1,700 to approximately N1,350 per litre in various parts of Nigeria. The refinery, with its substantial capacity, has commenced supplying diesel to the domestic market, providing relief to consumers.